“Many shippers struggle to know how much produce is in the field and what the quality is,” says Adam Wolf with Arable. “Having access to accurate data is key,” he added. If a shipper has too much produce, it can’t be sold for the right price. On the other hand, if supplies can’t be met, the buyer is upset. To meet the buyer’s needs, shippers sometimes have to buy from someone else at the last-minute, which can be very expensive.
“Often, shippers are not the growers, but they will receive permission from the grower to send scouts out in the field who take small samples and measure different parts of the field,” said Wolf. Usually, the data is collected a month before shipment and the contracts are put together three weeks before shipment. “This method has been used for decades, but estimates are often inaccurate, sometimes 20 – 50 percent off,” Wolf said.
The cost of inaccurate estimates
Banana estimates are usually the most accurate to 5 percent. Watermelon estimates are about 50 percent accurate and for strawberries it is only 20 percent. In most cases, it’s employees who put the estimates together. “Just within the strawberry industry, inaccurate estimates are causing a $500 million problem in the US,” shared Wolf.
Forecast device
“I’ve always been interested in optimization models. How to gain most benefits while taking the least amount of risk? In 2010, we started inventing a device that collects data about plant health, micro climates and soil types that is directly related to yield, quality, timing and perishability of produce,” mentioned Wolf. “There has never been a system that combines all factors together.” The result is a disk of about 7 inches wide that is based in the field. “It’s a plant station as opposed to a weather station,” said Wolf. “The device, called Arable Mark, is tough and weathers all circumstances, including hoop houses and orchards. It’s very flexible in terms of where it can be placed,” Wolf added. The spot area it measures is about twice the height, and this spot is representative of the fields for comparison across sites and districts.
Most of Arable’s R&D has been in strawberries and errors have come down from 20 percent to 5 percent. In addition to strawberries, research is being done within the lettuce, table grape, leafy greens and stone fruit categories.
Economical
Arable has priced its device to be affordable. The cost is $650 with a monthly subscription starting at $40. The company thought about internationalization during the invention process and has developed a unified system around the globe. Outside the US, Arable talked to a large lettuce grower in Europe for instance. The company sells $300 million worth of produce and has a 90 percent market share in their home country with production split between the UK and Spain. “For a company like this, it is crucial to have a reliable forecasting system for production and quality,” mentioned Wolf.
Arable will be exhibiting at United Fresh in Chicago. Please visit booth FTZ23 to learn more.
Contact:
Adam Wolf
Arable